American Capital to be Acquired by Ares Capital

June 30, 2016

On May 23, 2016, Ares Capital Corporation announced that it will acquire American Capital Ltd., excluding American Capital Mortgage Management, LLC, for $3.43 billion in a cash-and-stock deal.

The merger of Ares Capital Corporation (“Aries Capital”) and American Capital, Ltd. (“American Capital”) will create a company that has a pro forma basis of more than $13 billion of investments at fair value. Pursuant to the terms of the merger agreement, American Capital shareholders will receive $1.470 billion in cash from Ares Capital and .483 Ares Capital shares for each American Capital share, totaling approximately 110.8 million shares in Ares Capital. All current Ares Capital officers and directors will remain in their current roles. Consummation of the transaction is subject to the shareholder approval of both companies.

Ares Capital is a specialty finance company that provides debt and equity financing solutions to U.S. middle market companies, venture capital backed businesses and power generation projects.

American Capital is a publicly traded private equity firm and global asset manager that, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. As of March 31, 2016, American Capital managed approximately $20 billion assets, including assets on its balance sheet and fee earning assets under management by affiliated manage, with $77 billion of total assets under management.

To read the press release: please click here.


Mutual Fund M&A, Transactions